SHANGHAISINGAPORE, Jan 11 Reuters China39;s real estate investment products are tumbling, extending last year39;s slump as investors lose hope for a recovery in the economy and property assets such as industrial parks and logistics hubs.

Chinese real estate investment trusts REITs, which issue shares to investors against a portfolio of real estate holdings, have hit successive lows in the first few days of 2024.

After tumbling 28 in 2023, the CSI REITs Index has dropped another 6.4 this year through a rare, sevenday losing streak driven by one REITs manager39;s disclosure of cuts in warehouse rental prices and broader fears of falling yields.

The selloff reflects tumbling confidence in an economy where a deepening property crisis, weakening consumption and sputtering business activities have sapped demand for office buildings, warehouses and shopping malls.

It also complicates Beijing39;s efforts to lure investors into a nascent REIT market designed to channel badly needed cash to indebted local governments and property developers.

In an economic downtrend, it39;s getting harder and harder for REITs to make money, said Xia Chun, chief economist at Forthright Holdings Co.

Although REITs derive yields from relatively stable fee or rental incomes generated by underlying assets such as office towers or warehouses, Xia said REITs trade more like stocks than bonds, with big ups and downs, particularly in China.

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